Help available to avoid re-possession of your property, Sale and Rent back Options along with alternatives for selling.
Leasing or Options as its sometimes described offers vendors a number of different strategies for selling there property, some which may be relevant dependent on your financial situation and circumstances.
There are two options available:-
- Protected Lease Purchase
- Protected Lease Option.
What is a Protected Lease Purchase?
This is where a price is agreed for the property, contracts are exchange but there is a time lapse before completion. During this time the buyer pays a monthly payment agreed at the outset to the vendor. On expiry of the time lapse the completion takes place in the normal way.
Whereas commonly, exchange and completion with a property sale can be separated by four weeks or less, here completion with full transfer of the title is delayed a little longer. English law allows a maximum term of 80 years before completion must take place after exchange. Our agreements typically allow for a term of five years between exchange and completion.
The buyer is contractually and legally bound to buy the property within the agreed term, giving the vendor peace of mind.
When we can help
- When you may prefer to sell but would consider letting their property
- When early repayment fees on a mortgage would otherwise stop a sale
- When you have already moved on and are burdened by an empty house
- When you have the financial worry of looking after two properties
- When you don’t have sufficient funds to cover usual selling costs etc
- When you are a landlord who wants to retire, but is unable to sell due to Capital Gains Tax, or other reasons
Benefits to you:
Peace of Mind
- You can relax knowing that the sale of your property is guaranteed.
- The legal arrangements are handled by solicitors
- The entire procedure is technically identical to a standard sale and purchase
- There is a fixed period, agreed at the outset, within which the sale must complete
- It may be possible to achieve a better sale price than you would get if you sold traditionally in the current climate
Security
- Contracts are standard and binding
- In the case of non-performance or non-completion substantial penalties are payable by the buyer
- Harry Harper is a cash-rich organisation with a wealth of experience of buying property in this way, and maintains an outstanding reputation as a provider of innovative, practical and ethical property purchasing solutions
Freedom
- The seller is free to move on, whether that be for work, to upsize or downsize, or for other personal reasons
- The Protected Lease Purchase arrangement has helped many who may otherwise have lost the property in the face of changing personal circumstances
- The buyer makes a monthly payment to the lender or seller during the term, often covering the mortgage / finance, thereby relieving the pressure of paying a mortgage on a property they do not live in or cannot afford.
- Full and comprehensive bespoke buildings insurance, with Owner and Lender interests noted, is paid for by the buyer
- A fully repairing lease frees the seller from any ongoing or future property expense
- Completion can be timed so that the seller avoids early redemption penalties or mitigates Capital Gains Tax, making an otherwise difficult sale financially viable
Where the Protected Lease Purchase does not work
- When you are in dire financial difficulties
- When you are not comfortable with letting out the house
- When you need the equity out of the house to move on immediately
What is a Protected Lease Option?
An option is a contract between a vendor (seller) and a buyer which gives the buyer the use of the property from the date of signing the agreement, and the right to buy it in the future.
During the option period the option holder takes on responsibility for the property and pays a monthly fee to the vendor.
Under the terms of the contract, the vendor is obliged to sell the property to the buyer if and when he wishes to buy it. Whilst the buyer will not be legally obliged to buy the property, it is the buyer’s intention to go ahead with the purchase.
The Protected Lease Option is exclusive to Harry Harper Property Investment and gives the vendor unrivalled security in the residential option property market.
When we can help
- When you may prefer to sell but would consider letting their property
- When early repayment fees on a mortgage would otherwise stop a sale
- When you have already moved on but have the burden of an empty house
- When you have the financial worry of looking after two properties
- When you don’t have sufficient funds to cover all selling costs and fees
- When you are a landlord who wants to retire, but is unable to sell due to Capital Gains Tax or other reasons
Benefits to you
Peace of Mind
- The legal arrangements are handled by solicitors
- There is a fixed period, agreed at the outset, within which the sale may complete
- It may be possible to pay you more than they would get by selling it in the usual way in the current climate
Security
- Contracts protect the interests of buyer and seller and are binding
- Harry Harper is a cash-rich organisation with a wealth of experience of buying property in this way, and an outstanding reputation as a provider of innovative, practical and ethical property purchasing solutions
Freedom
- The seller is free to move on, whether that is for work, to upsize or downsize, or for other personal reasons
- The Protected Lease Option arrangement has helped many who may otherwise have lost the property in the face of changing personal circumstances
- The buyer makes a monthly payment to the lender or seller during the term, often covering the finance, thereby relieving the pressure of paying a mortgage on a property they do not live in
- Full and comprehensive bespoke buildings insurance, with Owner and Lender interest noted.
- A fully repairing lease frees the seller from any ongoing or future property expense
- Completion can be timed so that the seller avoids early redemption penalties or mitigates Capital Gains Tax, making an otherwise difficult sale financially viable
Where the Protected Lease Option does not work
- When you are in dire financial difficulties- although we can help with mortgage arrears or re-possession
- When you need the equity out of the house in the short term in order to move on
- When you are not comfortable with letting the house out
We will have answered some of your questions, but you may well have others. For more information or advice on how these schemes may be of assistance to you please call our office on 02920301711. Or e-mail info@harryharper.co.uk
We hope you have found this brief overview useful. We look forward to hearing from you and to working with you.